 "At the request of another federal government agency, on January 11, 2008, the FBI's Cyber Division provided an unclassified PowerPoint presentation and briefing on efforts to counter the production and distribution of counterfeit network hardware," said James Finch - Assistant Director FBI Cyber Division. |
"This unclassified briefing was never intended for broad distribution or posting to the Internet."
"This presentation discussed cyber threats including Operation Cisco Raider."
Actual slides from the FBI presentation:
Yours truly was stunned to see that the FBI's presentation was partly based on a Network World story published October 23rd, 2006:
The FBI even printed the web page URL address of the Network World story:
http://www.networkworld.com/news/2006/102306counterfeit.html
On the bottom right of the slide directly below:
Even more stunning to yours truly, was the blog entry published on The Platform - The Official Cisco Blog, in reaction to the unauthorized public release of the FBI PowerPoint presentation:
Cisco Statement on Counterfeit Goods
"So what can you do? We can’t stress enough the importance to Cisco customers and channel partners of procuring equipment only from Cisco authorized channels."
Yours truly was even more flabbergasted that the FBI presentation specifically pointed out that it was a Cisco authorized reseller, Atec Group Inc., which sold 30 counterfeit Cisco WAN Interface Cards (WIC) to the Cisco customer MortgageIT.
From the October 23rd, 2006 Network World story:
"Thirty cards turned out to be counterfeit, he says."
"Despite repeated calls and e-mails to his supplier, Atec Group Inc., the issue was not resolved."
The January 11th, 2008 FBI presentation also highlighted the FBI's problems with Cisco.
According to the FBI, one of its problems was in fact Cisco's solution:
Use Cisco Silver and Gold Partners
In the very next slide directly below, the FBI presentation stated that the Government's problem is that Cisco Gold/Silver partners are selling counterfeit gear to government and defense contractors.
Furthermore, the FBI presentation slide directly below clearly states another problem is that Cisco Brand Protection does NOT coordinate with Cisco's Government Sales.
So what has Cisco done about their authorized reseller, the Atec Group Inc. selling counterfeit Cisco?
Almost nineteen months after the Network World story, and more than four months after the FBI presentation, the Atec Group Inc. is still an authorized Cisco reseller:
Related story:
Twenty percent of Cisco WIC cards in Fortune 500 company were counterfeit
Do YOU agree with the FBI presentation above that Cisco Gold/Silver Partners are one of the problems with counterfeit Cisco being sold to government and defense contractors?
Finally, is Cisco itself creating the financial temptation for their Silver and Gold Partners to deal in counterfeit WICs because profit margins are so low selling Cisco hardware?
Brad Reese cofounded BradReese.Com Cisco Refurbished, which enables affordable networks globally by assuring customer satisfaction with guaranteed one year warranties on both Cisco Repair as well as Refurbished Cisco.
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surprised?
I have been of the mind that Cisco not only uses this information to their benefit, but is actually the SOURCE of counterfeit equipment in the market. By turning a blind eye to holes in their supply chain, they have successfully "poisoned the well" from which so many secondary marketeers drink. Rarely have I seen in my 23 years in the hardware market a manufacturer so hell bent on destroying the used equipment market. Only Sun and IBM come close in that regard, and IBM eventually came up with a plan that everyone could live with (banding/recertification). Cisco has become mad with power and can't soak up enough money from their customers, but they certainly try. I can sum up what Cisco REALLY cares about in three letters: POS. I can imagine more than a couple secret meetings in San Jose somewhere over the last several years where many backs have received congratulatory slaps. While this may be purely conjecture on my part, I believe it has basis in fact. If true, it is truly sad.
I'm really surprised at the
I'm really surprised at the amount of ignorance the government portrays.
There is a bottom line cost that the legit partner can obtain.
When the RFP goes out and they receive a bid 4 times LOWER than the legit partners, tghen issue the check, the government is 100% responsible.
Not only are they responsible for creating/fostering this environment, they are responsible for the detriment to the legit partners.
Let's face it, if you are in the business, you know who is selling legit and who isn't. It's quite simple. There are plenty of new and old school partners that will sell you legit stuff all day long.
Oh and it's very easy to very the purchase of the Cisco gear via POs (either direct or channel).
Cisco only marginal force
Yours truly received the following email message:
Actually, it raises the cost of counterfeiting.
The more information that is published, the fewer and fewer counterfeit firms will survive.
Its moving that way anyway.
The same thing happens with counterfeit bills.
The real battle is not Cisco against the counterfeiters, it is the Cisco non-authorized resellers versus the counterfeiters.
Cisco doesn't really care about them.
Until the word gets out about what is and what is not, the value of used equipment will decline.
That page is now posted at every single Cisco non-authorized VAR and the volume of counterfeit equipment has declined.
We work with several DOD suppliers to eliminate the problem.
The counterfeiters are getting better and worse.
There is more to what is happening in China than I can disclose to you.
Cisco is only a marginal force in this struggle.
Sincerely,
Brad Reese
http://www.BradReese.Com